CH10 Additional Questions Revised PDF

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Chapter 10 Additional Practice Questions to practice and prepare for the test....

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Chapter 10 Additional Practice Questions 1. Property losses can be categorized into destruction of property, and losses due to robbery, burglary, vandalism, or arson. 2. Property damage liability coverage would pay for damage to another vehicle for which you were at fault. 3. Actuaries develop risk models using past claims to calculate a premium sufficient to cover current and future events and still generate a profit 4. The cause of a possible loss, like a robbery, is called: A. hazard B. peril C. risk D. tragedy E. risk management 5. Starting a small business that may or may not succeed is an example of ___________ risk. A. speculative B. pure C. commercial D. personal E. liability 6. Negligence refers to: A. failure to take ordinary and reasonable care. B. cancellation of insurance. C. property damage. D. high risk insurance coverage. E. common hazards in our society. 7. An umbrella policy is designed to cover: A. expensive personal property. B. additional buildings on your property. C. property when traveling away from home. D. major personal liability suits. E. flood damage. 8. Which of the following would be covered by a home insurance policy? A. hospital expenses for surgery B. damage to another person's car when driving C. accidental injury to a coworker on the job

Chapter 10 Additional Practice Questions D. wind damage to your roof E. theft of business supplies from your office 9. Your home insurance provides for replacement value for personal property losses. A microwave is stolen. It cost $300 two years ago and has an expected life of six years. A comparable microwave costs $400 today. What amount will the insurance company pay? A. $100 B. $150 C. $200 D. $350 E. $400 10. Your home insurance policy has a $500 deductible. If a small fire causes $1,100 damage to your home, what amount of the claim would the insurance company pay? A. $1,100 B. $350 C. $500 D. $600 E. not able to determine from this information 11. The 25 in 50/100/25 refers to ____________ coverage. A. collision B. bodily injury liability C. comprehensive physical damage D. medical payments E. property damage liability 12. The 500 in 200/500/50 refers to: A. property damage liability coverage. B. the amount of the deductible. C. collision coverage. D. the total coverage for an accident. E. the limit for bodily injury claims that can be paid in total. For 13. Your current auto coverage is 50/100/25; claims from those injured are $75,000 and $25,000. Assuming you are at fault, what would be the payment from the insurance company? A. $75,000 B. $100,000 C. $25,000 D. $50,000

Chapter 10 Additional Practice Questions 14. Your current auto coverage is 65/100/30; claims from those injured are $75,000 and $25,000. If you are at fault, what amount is uninsured? A. All claims are insured B. $10,000 C. $65,000 D. $50,000

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1. TRUE 2. TRUE 3. TRUE 4. B 5. A 6. A 7. D 8. D 9. E 10. D 11. E 12. E 13. A

Chapter 10 Additional Practice Questions 14. B...